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In India, the influencer marketing sector is projected to reach INR3,375 crore by 2026, with a compound annual growth rate (CAGR) of 18%. Amidst the ever-changing landscape of the creator economy, India showcases vast potential and opportunity. The creator economy is expected to demonstrate substantial growth, reflecting the country’s innovation, creativity and entrepreneurial drive.
The report ‘State of influencer marketing in India’ further underscores the significant role influencers are playing while offering valuable insights for brands aiming to leverage influencer marketing’s potential to engage their audience, foster connections, and attain sustainable growth within India’s dynamic and competitive market environment.
The survey also highlights some of the issues faced by the creator economy. The biggest challenge for marketers is determining the ROI of their influencer marketing campaigns. Other top issues include building a loyal audience and maintaining credibility in the rapidly evolving digital space. The findings presented in this report are based on our survey conducted among CMOs, creators, agencies and individuals.
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The report indicates that 50% of the time spent on mobile phones is dedicated to social media platforms. Therefore, marketers should incorporate influencer marketing into their overall communication strategy.
Another intriguing finding from the survey reveals that influencer marketing is expected to be integrated into three out of every four brand strategies. Brands prioritize criteria such as engagement rate and the quality of the target audience when selecting influencers. It is thus imperative that these selection criteria align with campaign objectives.
Marketers are leveraging both large/macro and micro/nano influencers equally, and brand ambassadors and influencers are significantly influencing purchase decisions. It is important to strike a strategic balance between mega/macro influencers to enhance awareness and brand loyalty while also harnessing the power of micro/nano influencers to drive engagement for marketers.
Instagram and YouTube emerged as the top choices for consuming content from influencers, although they utilize several other platforms for specific purposes. Emerging platforms are gaining traction, providing innovative ways to engage with new consumer cohorts.
Lifestyle, fashion and beauty are poised to propel the growth of influencer marketing, with categories characterized by a profound personal connection reaping the greatest benefits from this strategy.
Agencies are playing a pivotal role in executing influencer marketing strategies with 77% of brands expressing confidence in their agencies’ capability to effectively manage influencer marketing campaigns. Marketers should collaborate with agencies that prioritize authentic, data-driven influencer strategies, offer real-time monitoring and insights, and prioritize brand safety.
In recent years, India has witnessed a significant surge in influencer marketing, sparking a transformation in advertising strategies and consumer engagement dynamics. It is an opportune time for influencers in India, as 86% of them anticipate a significant increase in their income over the next two years. In addition, the emergence of short video platforms, particularly popular among users from non-metro areas, has introduced a fresh dimension to content consumption. Brands are also increasingly acknowledging the potential of the creator economy and are ramping up their investments in influencer marketing, with sectors such as FMCG, automobiles and consumer durables.
